EUR/JPY trades higher around 165.00 on risk-on sentiment despite dovish ECB

Source Fxstreet
  • EUR/JPY extends gains on improved risk sentiment due to the de-escalated tensions between Israel and Iran.
  • ECB’s Villeroy said that Middle East situation is unlikely to impact the central bank’s intention of rate cuts in June.
  • BoJ Governor Kazuo Ueda advocated maintaining the loose monetary policy.

EUR/JPY traded on a stronger note around 164.90 during the early Asian session on Monday. However, the European Central Bank (ECB) will commence interest rate cuts in June, driven by a tepid Eurozone economic outlook and moderating core inflationary pressures. The ECB has conveyed a clear message to markets, suggesting that an interest rate cut could be imminent if significant developments don't occur.

As Reuters reported on Sunday, François Villeroy de Galhau, the governor of the Bank of France, said that the tension in the Middle East is not expected to lead to a significant increase in energy prices, and as a result, it is unlikely to impact the European Central Bank's intention to commence interest rate cuts in June.

The Japanese Yen (JPY) encounters challenges amid a resurgence in risk-on sentiment, with no notable geopolitical developments emerging over the weekend. Antony Blinken, the US Secretary of State, called for restraint following comments from an Iranian official indicating no immediate plans for retaliation against the reported Israeli missile strike. Blinken's statements came after the G7 meeting of foreign ministers in Capri, Italy, as reported by "The Guardian."

Furthermore, Bank of Japan (BoJ) Governor Kazuo Ueda made dovish remarks during a seminar hosted by the Peterson Institute for International Economics on Friday, according to Reuters. Ueda emphasized the necessity for the BoJ to maintain accommodative monetary policies in the foreseeable future due to underlying inflation remaining "somewhat below" the 2% target, with long-term inflation expectations hovering around 1.5%.

EUR/JPY

Overview
Today last price 164.95
Today Daily Change 0.20
Today Daily Change % 0.12
Today daily open 164.75
 
Trends
Daily SMA20 164.07
Daily SMA50 163.09
Daily SMA100 160.76
Daily SMA200 159.7
 
Levels
Previous Daily High 165.03
Previous Daily Low 163.02
Previous Weekly High 165.03
Previous Weekly Low 162.67
Previous Monthly High 165.36
Previous Monthly Low 160.22
Daily Fibonacci 38.2% 164.26
Daily Fibonacci 61.8% 163.79
Daily Pivot Point S1 163.5
Daily Pivot Point S2 162.26
Daily Pivot Point S3 161.5
Daily Pivot Point R1 165.51
Daily Pivot Point R2 166.27
Daily Pivot Point R3 167.52

 

 

Disclaimer: For information purposes only. Past performance is not indicative of future results.
placeholder
US August CPI lands tonight: after a 5.4% PPI shock, will the Fed hike on September 16?US August PPI came in at 5.4% year-on-year, above the 5.3% consensus, with core PPI at 4.6%. Traders have pushed the odds of a 25bp Fed hike on September 15-16 to around 70%. Tonight's CPI is the last major inflation print before the decision — here is the full calendar, the consensus numbers, and what a hot versus cool reading would mean for the dollar, yields, gold and stocks.
Author  Irene Q.
Sep 11, Fri
US August PPI came in at 5.4% year-on-year, above the 5.3% consensus, with core PPI at 4.6%. Traders have pushed the odds of a 25bp Fed hike on September 15-16 to around 70%. Tonight's CPI is the last major inflation print before the decision — here is the full calendar, the consensus numbers, and what a hot versus cool reading would mean for the dollar, yields, gold and stocks.
placeholder
Brent tests $108 as a key export pipeline stays shut — can the rally clear $110?Brent crude rose 2.55% to $106.97 and WTI 2.32% to $102.30 as a major regional export pipeline remained offline with no restart timeline. Front-month backwardation has widened to $5.53 from $3.84 a week ago, European gas is at its highest since December 2022, and one analyst sees $119.48 if talks stall.
Author  Irene Q.
Sep 14, Mon
Brent crude rose 2.55% to $106.97 and WTI 2.32% to $102.30 as a major regional export pipeline remained offline with no restart timeline. Front-month backwardation has widened to $5.53 from $3.84 a week ago, European gas is at its highest since December 2022, and one analyst sees $119.48 if talks stall.
placeholder
Fed hike odds near 90% into Wednesday's decision — how to trade the dollar, gold and the S&P 500A 0.3% monthly core CPI print has lifted the market-implied probability of a 25bp Fed hike on 16 September to roughly 86.5% ~ 90%, which would be the first increase since July 2023. Here is the decision timeline, the pricing versus the forecasts, both scenarios, and the key levels for the dollar, gold and the S&P 500.
Author  Suzie
Sep 14, Mon
A 0.3% monthly core CPI print has lifted the market-implied probability of a 25bp Fed hike on 16 September to roughly 86.5% ~ 90%, which would be the first increase since July 2023. Here is the decision timeline, the pricing versus the forecasts, both scenarios, and the key levels for the dollar, gold and the S&P 500.
placeholder
Gold falls below $4,300 as higher US yields bolster Fed rate hike betsGold price (XAU/USD) tumbles to near $4,295 during the early Asian session on Tuesday. The precious metal faces some selling pressure as rising bond yields and surging energy prices strengthen expectations that the US Federal Reserve (Fed) will raise interest rates this week. 
Author  FXStreet
Yesterday 01: 23
Gold price (XAU/USD) tumbles to near $4,295 during the early Asian session on Tuesday. The precious metal faces some selling pressure as rising bond yields and surging energy prices strengthen expectations that the US Federal Reserve (Fed) will raise interest rates this week. 
placeholder
【Daily Brief】10-year Treasury yield briefly tops 5%, S&P 500 slips to 7,602 and the dollar firms at 99.3 as the Fed's decision eve beginsThe 10-year Treasury yield touched 5.014% on Monday — its first print above 5% since October 2023 — while the S&P 500 closed 0.48% lower at 7,619.98 and the dollar index firmed to 99.3. Here is the full market wrap ahead of Wednesday's FOMC decision, the dot plot and the August retail sales report, plus today's CLARITY Act Senate vote.
Author  Irene Q.
Yesterday 08: 16
The 10-year Treasury yield touched 5.014% on Monday — its first print above 5% since October 2023 — while the S&P 500 closed 0.48% lower at 7,619.98 and the dollar index firmed to 99.3. Here is the full market wrap ahead of Wednesday's FOMC decision, the dot plot and the August retail sales report, plus today's CLARITY Act Senate vote.
Related Instrument
goTop
quote